The monthly inflation report from the United States showed that consumer prices rose less than forecast. On a month over month basis, headline CPI was unchanged.
This missed estimates of a 0.1% increase. Core inflation rate rose 0.1%, falling short of the 0.2% increase. The US dollar weakened on the news. Headline inflation slipped to 1.7% on the year following the latest release.
EUR/USD Jumps on the Back of a Weaker USD
The euro maintained the bullish momentum. The currency pair rose to a three-week high, briefly testing 1.1091. The gains come as the EURUSD has been trading below this resistance level over the past few weeks. Further momentum to the upside could see the common currency breaking past the current resistance level. The next upside target is at 1.1140.
